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Hindustan Times
8 hours ago
- Business
- Hindustan Times
India holds emergency talks with stakeholders as Iran-Israel conflict puts $825 billion trade at risk
The commerce ministry on Friday will meet stakeholders, including shipping lines, exporters, container firms, and other departments, to assess the impact of the Iran-Israel conflict on India's overseas trade and address related issues, an official said. The industry official said that the meeting will be chaired by Commerce Secretary Sunil Barthwal. "The meeting is today. We will raise issues related to freight rates," the official said. Barthwal has earlier stated that India is keeping a close watch on the situation. Exporters have stated that the war, if escalated further, would impact world trade and push both air and sea freight rates. They have expressed apprehensions that the conflict may impact the movement of merchant ships from the Strait of Hormuz and the Red Sea. Nearly two-thirds of India's crude oil and half of its LNG imports pass through the Strait of Hormuz, which Iran has now threatened to close. This narrow waterway, only 21 miles wide at its narrowest point, handles nearly a fifth of global oil trade and is indispensable to India, which depends on imports for over 80 per cent of its energy needs. According to think tank GTRI, any closure or military disruption in the Strait of Hormuz would sharply increase oil prices, shipping costs, and insurance premiums, triggering inflation, pressuring the rupee, and complicating India's fiscal management. Meanwhile, Israel's June 14-15 strike on Houthi military leadership in Yemen has also heightened tensions in the Red Sea region, where Houthi forces have already attacked commercial shipping. For India, this poses another serious risk. Nearly 30 per cent of India's west-bound exports to Europe, North Africa, and the US East Coast travel through the Bab el-Mandeb Strait, now vulnerable to further disruption, the GTRI has said. The present conflict that began with an attack on Israel on October 7, 2023, has brought cargo movement through Red Sea routes to a halt due to attacks by Houthi rebels on commercial shipping. After the US intervened with attacks on the rebels, the firing on commercial ships stopped. Last year, the situation around the Bab-el-Mandeb Strait, a crucial shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, escalated due to attacks by Yemen-based Houthi militants. Around 80 per cent of India's merchandise trade with Europe passes through the Red Sea, and substantial trade with the US also takes this route. Both these geographies account for 34 per cent of the country's total exports. The Red Sea Strait is vital for 30 per cent of global container traffic and 12 per cent of world trade. India's exports to Israel have fallen sharply to USD 2.1 billion in 2024-25 from USD 4.5 billion in 2023-24. Imports from Israel came down to USD 1.6 billion in the last fiscal from USD 2.0 billion in 2023-24. Similarly, exports to Iran, amounting to USD 1.4 billion, which were at the same level in 2024-25 as well as in 2023-24, could also suffer. India's imports from Iran were at USD 441 million in FY25 as against USD 625 million in the previous year. The conflict adds to the pressure that the world trade was under after the US President Donald Trump announced high tariffs. Based on the tariff war impact, the World Trade Organisation (WTO) has already said that global trade will contract 0.2 per cent in 2025 as against the earlier projection of 2.7 per cent expansion. India's overall exports had grown 6 per cent on year to USD 825 billion in 2024-25.
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Business Standard
8 hours ago
- Business
- Business Standard
Govt to meet stakeholders to assess impact of Iran-Israel conflict on trade
The commerce ministry on Friday will meet stakeholders, including shipping lines, exporters, container firms, and other departments, to assess the impact of the Iran-Israel conflict on India's overseas trade and address related issues, an official said. The industry official said that the meeting will be chaired by Commerce Secretary Sunil Barthwal. "The meeting is today. We will raise issues related to freight rates," the official said. Barthwal has earlier stated that India is keeping a close watch on the situation. Exporters have stated that the war, if escalated further, would impact world trade and push both air and sea freight rates. They have expressed apprehensions that the conflict may impact the movement of merchant ships from the Strait of Hormuz and the Red Sea. Nearly two-thirds of India's crude oil and half of its LNG imports pass through the Strait of Hormuz, which Iran has now threatened to close. This narrow waterway, only 21 miles wide at its narrowest point, handles nearly a fifth of global oil trade and is indispensable to India, which depends on imports for over 80 per cent of its energy needs. According to think tank GTRI, any closure or military disruption in the Strait of Hormuz would sharply increase oil prices, shipping costs, and insurance premiums, triggering inflation, pressuring the rupee, and complicating India's fiscal management. Meanwhile, Israel's June 14-15 strike on Houthi military leadership in Yemen has also heightened tensions in the Red Sea region, where Houthi forces have already attacked commercial shipping. For India, this poses another serious risk. Nearly 30 per cent of India's west-bound exports to Europe, North Africa, and the US East Coast travel through the Bab el-Mandeb Strait, now vulnerable to further disruption, the GTRI has said. The present conflict that began with an attack on Israel on October 7, 2023, had brought cargo movement through Red Sea routes to a halt due to attacks by Houthi rebels on commercial shipping. After the US intervened with attacks on the rebels, the firing on commercial ships stopped. Last year, the situation around the Bab-el-Mandeb Strait, a crucial shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, escalated due to attacks by Yemen-based Houthi militants. Around 80 per cent of India's merchandise trade with Europe passes through the Red Sea, and substantial trade with the US also takes this route. Both these geographies account for 34 per cent of the country's total exports. The Red Sea Strait is vital for 30 per cent of global container traffic and 12 per cent of world trade. India's exports to Israel have fallen sharply to USD 2.1 billion in 2024-25 from USD 4.5 billion in 2023-24. Imports from Israel came down to USD 1.6 billion in the last fiscal from USD 2.0 billion in 2023-24. Similarly, exports to Iran, amounting to USD 1.4 billion, which were at the same level in 2024-25 as well as in 2023-24, could also suffer. India's imports from Iran were at USD 441 million in FY25 as against USD 625 million in the previous year. The conflict adds to the pressure that the world trade was under after the US President Donald Trump announced high tariffs. Based on the tariff war impact, the World Trade Organisation (WTO) has already said that global trade will contract 0.2 per cent in 2025 as against the earlier projection of 2.7 per cent expansion. India's overall exports had grown 6 per cent on year to USD 825 billion in 2024-25.
Time of India
11 hours ago
- Business
- Time of India
Commerce Ministry to meet stakeholders to assess impact of Iran-Israel conflict on India's trade
The commerce ministry on Friday will meet stakeholders, including shipping lines, exporters, container firms, and other departments, to assess the impact of the Iran-Israel conflict on India's overseas trade and address related issues, an official said. The industry official said that the meeting will be chaired by Commerce Secretary Sunil Barthwal . "The meeting is today. We will raise issues related to freight rates," the official said. Barthwal has earlier stated that India is keeping a close watch on the situation. Exporters have stated that the war, if escalated further, would impact world trade and push both air and sea freight rates. Live Events They have expressed apprehensions that the conflict may impact the movement of merchant ships from the Strait of Hormuz and the Red Sea. Nearly two-thirds of India's crude oil and half of its LNG imports pass through the Strait of Hormuz, which Iran has now threatened to close. This narrow waterway, only 21 miles wide at its narrowest point, handles nearly a fifth of global oil trade and is indispensable to India, which depends on imports for over 80 per cent of its energy needs. According to think tank GTRI, any closure or military disruption in the Strait of Hormuz would sharply increase oil prices, shipping costs, and insurance premiums, triggering inflation, pressuring the rupee, and complicating India's fiscal management. Meanwhile, Israel's June 14-15 strike on Houthi military leadership in Yemen has also heightened tensions in the Red Sea region, where Houthi forces have already attacked commercial shipping. For India, this poses another serious risk. Nearly 30 per cent of India's west-bound exports to Europe, North Africa, and the US East Coast travel through the Bab el-Mandeb Strait, now vulnerable to further disruption, the GTRI has said. The present conflict that began with an attack on Israel on October 7, 2023, had brought cargo movement through Red Sea routes to a halt due to attacks by Houthi rebels on commercial shipping. After the US intervened with attacks on the rebels, the firing on commercial ships stopped. Last year, the situation around the Bab-el-Mandeb Strait, a crucial shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, escalated due to attacks by Yemen-based Houthi militants. Around 80 per cent of India's merchandise trade with Europe passes through the Red Sea, and substantial trade with the US also takes this route. Both these geographies account for 34 per cent of the country's total exports. The Red Sea Strait is vital for 30 per cent of global container traffic and 12 per cent of world trade. India's exports to Israel have fallen sharply to USD 2.1 billion in 2024-25 from USD 4.5 billion in 2023-24. Imports from Israel came down to USD 1.6 billion in the last fiscal from USD 2.0 billion in 2023-24. Similarly, exports to Iran, amounting to USD 1.4 billion, which were at the same level in 2024-25 as well as in 2023-24, could also suffer. India's imports from Iran were at USD 441 million in FY25 as against USD 625 million in the previous year. The conflict adds to the pressure that the world trade was under after the US President Donald Trump announced high tariffs. Based on the tariff war impact, the World Trade Organisation (WTO) has already said that global trade will contract 0.2 per cent in 2025 as against the earlier projection of 2.7 per cent expansion. India's overall exports had grown 6 per cent on year to USD 825 billion in 2024-25.
The Hindu
11 hours ago
- Business
- The Hindu
Govt to meet stakeholders to assess impact of Iran-Israel conflict on India's trade
The Commerce Ministry on Friday (June 20, 2025) will meet stakeholders, including shipping lines, exporters, container firms, and other departments, to assess the impact of the Iran-Israel conflict on India's overseas trade and address related issues, an official said. The industry official said that the meeting will be chaired by Commerce Secretary Sunil Barthwal. "The meeting is today. We will raise issues related to freight rates," the official said. Mr. Barthwal has earlier stated that India is keeping a close watch on the situation. Exporters have stated that the war, if escalated further, would impact world trade and push both air and sea freight rates. They have expressed apprehensions that the conflict may impact the movement of merchant ships from the Strait of Hormuz and the Red Sea. Nearly two-thirds of India's crude oil and half of its LNG imports pass through the Strait of Hormuz, which Iran has now threatened to close. This narrow waterway, only 21 miles wide at its narrowest point, handles nearly a fifth of global oil trade and is indispensable to India, which depends on imports for over 80% of its energy needs. According to think tank GTRI, any closure or military disruption in the Strait of Hormuz would sharply increase oil prices, shipping costs, and insurance premiums, triggering inflation, pressuring the rupee, and complicating India's fiscal management. Meanwhile, Israel's June 14-15 strike on Houthi military leadership in Yemen has also heightened tensions in the Red Sea region, where Houthi forces have already attacked commercial shipping. For India, this poses another serious risk. Nearly 30% of India's west-bound exports to Europe, North Africa, and the US East Coast travel through the Bab el-Mandeb Strait, now vulnerable to further disruption, the GTRI has said. The present conflict that began with an attack on Israel on October 7, 2023, had brought cargo movement through Red Sea routes to a halt due to attacks by Houthi rebels on commercial shipping. After the U.S. intervened with attacks on the rebels, the firing on commercial ships stopped. Last year, the situation around the Bab-el-Mandeb Strait, a crucial shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, escalated due to attacks by Yemen-based Houthi militants. Around 80% of India's merchandise trade with Europe passes through the Red Sea, and substantial trade with the U.S. also takes this route. Both these geographies account for 34% of the country's total exports. The Red Sea Strait is vital for 30% of global container traffic and 12% of world trade. India's exports to Israel have fallen sharply to $2.1 billion in 2024-25 from $4.5 billion in 2023-24. Imports from Israel came down to $1.6 billion in the last fiscal from $2.0 billion in 2023-24. Similarly, exports to Iran, amounting to $1.4 billion, which were at the same level in 2024-25 as well as in 2023-24, could also suffer. India's imports from Iran were at $441 million in FY25 as against $625 million in the previous year. The conflict adds to the pressure that the world trade was under after the US President Donald Trump announced high tariffs. Based on the tariff war impact, the World Trade Organisation (WTO) has already said that global trade will contract 0.2% in 2025 as against the earlier projection of 2.7% expansion. India's overall exports had grown 6% on year to $825 billion in 2024-25.
The Print
3 days ago
- Business
- The Print
India's exports dip 2.17 pc to USD 38.73 bn in May; trade gap shrinks to USD 21.88 bn
Cumulatively, during April-May 2025-26, exports increased by 3.11 per cent to USD 77.19 billion, while imports rose by 8 per cent to USD 125.52 billion, the data showed. According to government data released on Monday, imports declined 1.7 per cent year-on-year to USD 60.61 billion during the month under review due to fall in the inbound shipments of gold and crude oil. New Delhi, Jun 16 (PTI) After registering a positive growth for two months, India's exports slipped into negative territory again, contracting 2.17 per cent year-on-year to USD 38.73 billion in May due to a fall in petroleum goods' shipments, while trade deficit narrowed to USD 21.88 billion during the month. The trade deficit was USD 48.33 billion during the period. The dip in exports and imports narrowed the trade deficit, the difference between the value of imports and exports, in May. The gap was USD 22.51 billion in the same month last year and at USD 26.42 billion in April. The fall in merchandise shipments can be attributed to increasing global uncertainties. The Iran-Israel war could further dampen the prospects. The commerce ministry is holding an inter-ministerial meeting along with stakeholders this week to discuss what can emerge out of this conflict. The main export sectors which recorded negative growth during the month included rice, iron ore, gems and jewellery, engineering, and certain textile segment goods. Exports of petroleum products declined by 30.32 per cent to USD 5.6 billion in May. Similarly, crude oil and gold imports decreased by 26.14 per cent and 12.6 per cent to USD 14.75 billion and USD 2.5 billion, respectively. However, exports of tea, coffee, spices, ready-made garments of all textiles, chemicals, marine products, and pharma have registered positive growth. Electronic goods' shipments rose 54.1 per cent to USD 45.7 billion in May. Briefing the media on the data, Commerce Secretary Sunil Barthwal said that despite global uncertainties, India is doing good on the exports front. 'Despite the global policy uncertainty regarding trade, ongoing conflicts, we have done extremely well (during the April-May period),' he said, adding petroleum prices are volatile. During the last two months, crude oil prices have dipped and it has a 'dampening' impact on exports, he added. 'If you look at the global picture…we are doing much better than the global average,' Barthwal said, adding, like last year, the ministry would focus on 20 countries and six sectors. 'We have been in touch with our Missions. We are strengthening our Missions. Currently, all the commerce ministry posts in Missions have been filled up so that there can be a better thrust on trade,' he added. The secretary also said that the ministry is actively pursuing three free trade agreements (FTAs) with the UK (soon to be signed), the European Union and the US. Talks are on with New Zealand, Peru and Chile. Federation of Indian Export Organisations (FIEO) President S C Ralhan said that exporters are adapting well to a tough global environment. Mithileshwar Thakur, Secretary General at AEPC (Apparel Export Promotion Council), said that exports have been keeping the momentum and registering an impressive double-digit growth during this fiscal so far. The growth in exports to the US, the UK, Germany, Spain, Italy, Netherlands, coupled with impressive performance in countries like Australia, Japan, Korea, Mauritius, has kept the spirit high. 'The industry is upbeat about the news of early conclusion of FTA with the USA and the EU, which are our largest markets,' Thakur added. At the services front, the exports for May are estimated at USD 32.39 billion as compared to USD 29.61 billion in May 2024. Imports, on the other hand, rose to USD 17.14 billion as against USD 16.88 billion same month last year. PTI RR CS HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
